Tata Trusts, a group of charitable entities that owns two-thirds of Tata Sons, will exit from the listed group companies, from Tata Steel to Tata Motors, by selling their minority stake in them to the holding company, said two people with direct knowledge of the plans.

Tata Motors' poor performance locally has brought the spotlight on the group's unimpressive revenues generated at home, said top officials close to the development. A Tata CEO, requesting anonymity , said that while the group has a large presence outside the country , much of the group's profit (except JLR) is generated in India.

At present unorganized companies dominate the industry, accounting for approximately 80 percent of the total logistics market in India, according to Alvarez & Marsal. It is rife with fragmentation and inefficiencies.

In fact, segment leaders like Maruti Suzuki, Tata Motors and Hero MotoCorp have reported de-growth of 34.3 per cent, 45 per cent and 20 per cent, respectively giving a clear indication of a prolonged slowdown in the sector.